E-Commerce Business Accounting in Markham

Page summary

Specialized e-commerce accounting for online retailers. Track sales across multiple channels, manage inventory, optimize tax, and stay compliant with CRA.

• E-commerce businesses face unique accounting challenges: selling across multiple channels (Shopify, Amazon, eBay, your own site), managing inventory across warehouses, handling payment processor fees, and understanding sales tax rules for digital products and cross-border sales.
• Centralized tracking of sales across all channels
• Accurate inventory valuation and variance analysis
• Proper accounting for payment processor fees
• Cross-border sales tax compliance and optimization
• E-Commerce Platform Integration: We integrate your accounting system with your sales platforms (Shopify, Amazon, WooCommerce) to automatically pull sales data. This ensures accuracy and eliminates manual data entry.
• Chart of Accounts Setup: We customize your chart of accounts for e-commerce: tracking sales by channel, payment processor fees, shipping costs, returns, and inventory. This provides detailed profitability insights.
• Inventory & Tax Setup: We implement inventory tracking methods (FIFO, weighted average) and set up tax calculation rules for different product types and shipping destinations.
• Ongoing Analysis & Reporting: Monthly financial statements showing sales by channel, profitability by product or category, inventory health, and cash flow. Quarterly tax reviews ensure compliance.

Related pages

• Bookkeeping Services: Related accounting and tax support.
• Tax Planning Services: Related accounting and tax support.
• GST/HST Compliance: Related accounting and tax support.
• Corporate Tax Services: Related accounting and tax support.
• GST/HST Compliance: Industry guidance connected to E-Commerce Business Accounting in Markham.
• Virtual CFO Services: Industry guidance connected to E-Commerce Business Accounting in Markham.
• Contact ARMalik: Discuss e-commerce business accounting in markham with a Markham CPA.

Common questions

When do online sellers need to register for HST/GST?

You must register for GST/HST once your worldwide taxable sales exceed $30,000 in any single calendar quarter or in the last four consecutive quarters. Once registered, you collect and remit HST on sales to Canadian customers (at the rate for their province), and you can claim Input Tax Credits on your business expenses. Many Markham e-commerce sellers hit this threshold faster than expected once their Shopify or Amazon store gains traction — registering late creates back-liability exposure.

How do I handle sales tax on US and international orders?

Canadian sellers are generally not required to collect US state sales tax unless they have nexus (a physical presence or, in some states, economic nexus above a sales threshold) in that state. However, US economic nexus thresholds — often $100K USD in sales or 200 transactions per state — can catch growing Canadian sellers off guard. For international orders, the customer typically pays import duties. We map out your exposure and help you decide whether US sales tax registration is necessary, and flag which states are highest-risk.

Are Shopify, Stripe, and PayPal fees fully deductible?

Yes — platform subscription fees, transaction fees, and payment processing fees (Stripe, PayPal, Shopify Payments) are fully deductible business expenses in the year incurred. They should be recorded gross: recognize the full sale revenue, then deduct the fees separately. Netting fees against revenue understates both your revenue and your expenses, which distorts profitability analysis and can raise questions if CRA requests bank reconciliations.

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